Precision Castparts to buy plane parts maker Primus Int for $900 mn
11 July 2011
Precision Castparts Corp, a US-based industrial goods and metal fabrication company said that it will buy plane parts maker Primus International for $900 million in cash.
The deal announced yesterday by Precision, a Fortune 500 Company, is its largest in a recent string of acquisitions.
Based in Bellevue, Washington, Primus is a supplier of complex components and assemblies to the global aerospace industry, including swaged rods, advanced composites, and machined aluminum and titanium components. Product applications include wing, fuselage and engine-related assembly, passenger and exit doors, and actuation and flight control assemblies.
Primus focuses on commercial aerospace platforms including Boeing 737, Boeing 777, Boeing 787, and Airbus 320. The company has seven manufacturing facilities in Washington and Oklahoma in the US, the UK, Thailand and China.
Its clients are leading commercial aircraft manufacturers like Airbus, BAE Systems Bell Helicopter, Boeing, Bombardier, Cessna, Embraer, Northrop Grumman, Rolls-Royce, SAAB Aerospace among others.
Precision, based in Oregon, is buying Primus from private-equity firm Oak Hill Capital Partners, which acquired the company in 2006.
Precision is a global diversified manufacturer of complex metal components and products used in jet aircraft engines and industrial gas turbines.
The company is also a leading producer of highly engineered, critical fasteners for aerospace and other general industrial markets, and supplies metal alloys and other materials to the casting and forging industries.
The latest acquisition by Precision is part of its aggressive expansion strategy that has helped boost the company's sales from $5.5 billion in 2010 to $6.2 billion in 2011.
Last month, Precision agreed to acquire the rings operations of Unison Engine Components (Tru-Form) from GE Aviation, the seamless alloy and stainless steel pipes assets of the Rollmet from Rockwell Collins and acquired KLAD Manufacturing, a supplier of weld overlay applications including pipe and tube, as well as large vessels.
''The acquisition of Primus clearly demonstrates our focused pursuit of component manufacturing businesses that align with our core competencies,'' said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp.